Presented is Violet Company’s Contribution Income Statement:…

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Presented is Viоlet Cоmpаny’s Cоntribution Income Stаtement: VIOLET COMPANY Contribution Income Stаtement For the Month Ending January 31, 2020       Sales   $200,000   Less variable costs:       Direct materials $50,000     Direct labor 20,000     Variable factory overhead 60,000     Variable S&A expenses 12,000 (142,000 ) Contribution margin   $ 58,000   Less fixed costs:       Factory overhead $13,000     Fixed S&A expenses 12,000 (25,000 ) Net income   $ 33,000   With a functional income statement, Violet would have reported a gross margin of:

Presented is Viоlet Cоmpаny’s Cоntribution Income Stаtement: VIOLET COMPANY Contribution Income Stаtement For the Month Ending January 31, 2020       Sales   $200,000   Less variable costs:       Direct materials $50,000     Direct labor 20,000     Variable factory overhead 60,000     Variable S&A expenses 12,000 (142,000 ) Contribution margin   $ 58,000   Less fixed costs:       Factory overhead $13,000     Fixed S&A expenses 12,000 (25,000 ) Net income   $ 33,000   With a functional income statement, Violet would have reported a gross margin of:

Presented is Viоlet Cоmpаny’s Cоntribution Income Stаtement: VIOLET COMPANY Contribution Income Stаtement For the Month Ending January 31, 2020       Sales   $200,000   Less variable costs:       Direct materials $50,000     Direct labor 20,000     Variable factory overhead 60,000     Variable S&A expenses 12,000 (142,000 ) Contribution margin   $ 58,000   Less fixed costs:       Factory overhead $13,000     Fixed S&A expenses 12,000 (25,000 ) Net income   $ 33,000   With a functional income statement, Violet would have reported a gross margin of:

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